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2019 (2) TMI 41 - AT - Income TaxDisallowance u/s.14A r.w. Rule 8D - Held that:- Assessee during the Assessment Year under consideration received exempt income of ₹.57,539/- and the CIT(A) following the decision of the Punjab & Haryana High Court in the case of Pr. CIT v. Empire Package (P.) Ltd. (2016 (2) TMI 505 - PUNJAB AND HARYANA HIGH COURT) and Nimbus Communication ltd v. ACIT (2016 (5) TMI 166 - ITAT MUMBAI) restricted the disallowance u/s. 14A to the exempt income received by the assessee during the Assessment Year under consideration. This bench is consistently holding that the disallowance u/s. 14A should not exceed exempt income. Thus, we do not find any infirmity in the order passed by the Ld.CIT(A) in restricting the disallowance u/s. 14A to the exempt income received by the assessee. Claim for depreciation on the Bizerba Weighing Scales as part of computer - Held that:- We find that this issue has been decided against the assessee and in favour of the Revenue by the Tribunal upholding the disallowance made by the AO. The Tribunal held that Bizerba Weighing Scale is not part of the computer and therefore not entitled for depreciation @60% as claimed by the assessee. respectfully following the said decision, we uphold the disallowance made by the Assessing Officer in respect of Bizerba Weighing Scales. This ground of Revenue is allowed. Disallowance made u/s. 14A - Held that:- We do not find any infirmity in the order passed by the Ld.CIT(A) in deleting the disallowance made u/s. 14A of the Act by the assessee since the assessee has not earned any exempt income during the Assessment Year 2012-13. Disallowance u/s 14A - whether suomoto disallowance made in the return of income should not be considered for disallowance in the absence of any exempt income - Held that:- CIT(A) restricted the disallowance to the suomoto disallowance which was already made by the assessee in the return of income and deleted the disallowance made by the Assessing Officer. Since the CIT(A) failed to consider the submissions of the assessee apparently by oversight, we are of the considered view that this issue in assessee’s appeal should be restored to the file of the CIT(A) for adjudicating the claim in accordance with law. Issue raised by the assessee in its appeal is restored to the file of the CIT(A) who shall decide in accordance with law, after providing adequate opportunity of being heard to the assessee.
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